South America

Peruvian fresh food exporter Camposol tightened pricing on its new bond by well over 50bp from initial price thoughts on Tuesday as bankers said the price discovery exercise had exceeded expectations.

Colombian financial conglomerate Grupo Aval found idyllic conditions on its return to international bond markets on Tuesday after an eight absence, offering a minimal concession to existing notes issued by its largest subsidiary.

Bankers and investors say that the Province of Buenos Aires is facing difficulties in persuading 75% of bondholders to support a two month delay in debt payments, prompting the government to offer a sweetener in the shape of advance interest payments.

Three Latin American companies issued bonds on Thursday and three more are meeting investors, as borrowers of all shapes and sizes assess the appetite for their debt.

Investors saw Colombia’s decision to hit international bond markets on the day a national strike was planned as a statement of intent. But concerns over social unrest, or indeed a challenging fiscal outlook, paled into insignificance as yield hungry investors took the chance to buy into what remains an economic outperformer in Latin America.

Two long-established, but long-absent, Brazilian issuers have turned to international bond markets as US dollar bonds become a more competitive option for the country’s issuers.

Chile completed its $3.3bn of external funding needs for the year in two days this week, tapping both euro and dollar markets for green bonds that EM accounts say are becoming increasingly important for their end investors.

The day after it sold €1.961bn of green bonds in the euro market, Chile jumped on borrower-friendly conditions in dollars to complete its higher than usual external funding needs for the year.

Banco Bradesco returned to international bond markets on Wednesday after an extended absence, and fellow Brazilian Eletrobras is also plotting a cross-border deal as US bond markets finally begin to look attractive for Brazilian issuers.

Telefónica Celular del Paraguay (TeleCel), the Paraguayan subsidiary of pan-EM telecoms group Millicom International Cellular, took advantage of a buzzing bond market to add $250m on Tuesday to a bond issued last April.

Investors said that Chile’s focus on green bonds should allow it to diversify its funding base as the sovereign shrugged off political uncertainty to clinch tight pricing on its return to euro markets on Tuesday.

Colombia made its usual January bond market outing on Tuesday, unperturbed by protests across the country and capturing strong demand despite some indications of worry about the long-term fiscal picture.